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Verus Mortgage Capital, one of QMM’s non-QMM lenders, has launched a new mortgage-backed security agreement.
Verus completed its 10th non-QMBS transaction of 2022 last week, for $755.6 million. The portfolio has a total of 1,268 loans – most of them (10%) are provided by FM Home Loans.
The loan pool is set for an average of 14 months. In the sales report, S&P Global Ratings said 27 loans were 30 to 50 days past due.
“These loans have a weighted FICO of 636, which is lower than the average FICO of the pool of 736,” the rating agency wrote in the report. Delinquency adjustments support the FICO score.
There are 115 loans (15.6% outstanding) with a 40-year maturity, one of them is a 40-year fully amortized fixed rate loan and the other loans have a 10-year interest-only plan. years with maturities of 30 years amortizations.
They consider long maturities to be a weaker loan characteristic than short-term loans and therefore increase our loss coverage for these loans by applying adjustments to the default frequency.
NewRez (dba Shellpoint Mortgage Servicing) served as managing director of the transaction, while Nationstar Mortgage (dba Mr. Cooper Servicing) served as managing director.
Verus is a full-service lender focused on the collection and security of non-QM home loans.
It buys mortgages in all 50 states and offers include LTVs up to 90%, down payments of up to $500,000, full documentation, and more in foreign countries.
Reference Source: MPA
